Trade In Advice

[ct221933]

I negotiated and placed $500 check deposit for a 2011 SR5 BP T4R that will arrive in the next couple of days. The dealer agreed to $5000 for my 03 Honda Element trade. I negotiated the price of the new T4R over the email and phone before I showed up at the dealership to appraise my trade in and give them my check.

Today I was at a Honda dealer and they offered me $5500 to buy my 03 Element without having to buy one of their new cars.

Is it likely that the Toyota dealer will renege on the selling price if I do not have a trade in when the new vehicle arrives?

Any advice on how to handle this situation?

 

[hamiltonj2w1]

This is easy tell Toyota to give you 6,000.00 since Honda will give you $5,500.00 without a purchase. Or they will tell you to take a hike but this is why you should do your research for what other dealers will give you before negotiating the vehicle you really want

 

[ct221933]

This is easy tell Toyota to give you 6 since Honda will give you $5,500.00 without a purchase.

Should I ask over the phone before the T4R arrives? Or should I re-negotiate the trade-in when the new vehicle arrives?

I am not a very experienced car-buyer. I am afraid of pissing them off and they sell the vehicle I have been waiting patiently for weeks to someone else.

Thanks

 

[NYRunner]

Don't ask~ go sell it to Honda and just show up with the extra cash in hand. If they say boo ask what do they care, they get their $5k... which was, uh, "all it was worth" right?

The terms of your loan won't change will they? No~

I did the same thing, and I can't imagine any salesman ever letting their manager drop a sale over it. I know I wouldn't... and the manager won't care- they just want cars off the lot TODAY

 

[TTown]

You shouldn't worry about the dealership not selling you the car.

I would first book your car on KBB.com then call your salesman and let them know you would like $500 more for your trade. If they give you crap about it, let them know you where at the honda dealership looking at the Pilot and they offered you $5500 for your vehicle. If they are not willing to budge, tell them if they want the deal done, then they need to give you $500 more. If they have to get a buy bid from another dealership to do so, then you are fine with that.

Dealerships will often get buy bids on trade-ins that are not what they would sell on their lot.

My guess is that they will try to give you a hard time, but will eventually give in to get the deal done. For future reference be sure to do your homework on your trade-in before you start negotiating. By the way, don't worry about your $500 deposit. If they don't sell you the vehicle they wont keep your deposit.

What I would not do is pull the trade and expect Honda to pay you $5500 after you take delivery of your new car.

 

[fraggy]

The advice that a dealer will not keep your deposit is not necessarily true. In the northwest, some Toyota dealers have non-refundable deposits when you order a new truck. If the dealer offered you $5K for the car and you want to give them $5K in cash, I would let them know ahead of time. Try to get them to update the papers so you will have some peace of mind. Usually, they will just take the cash. The only exception is if they believe they can make big bucks on your car on the used car lot.

 

[philsey]

Have you considered the retail sales tax impact. If you trade, your sale is taxed on $5000 less. At 6% this is $300 less tax. I wouldn't mess with the deal for that.

It sounds as if you own this van. If Honda is offering you $5500, then it's worth $7000 --- sell it yourself. Trades always muck up a deal anyway.

I always sell my "old" car, and usually make $2k more than the trade offered.

 

[Ben_Mueller]

For cars that you own outright like it sounds like you do. Clean er up and sell it for 7-8k. Be a bit more patient and you will get the best deal.

If you are set on trading it in I would absolutly tell the dealer that you were offered 5500 and ask them what they can do. I got an additional 1k out of my recent purchase, which was already the lowest deal I had been offered at several dealers, just by giving them the "silent" treatment when negotiating. They would ask what would get the deal done, I would just sit there and appear to be thinking really hard. Then they would mysteriously find a bit more to squeeze out Worked great! And this was at a "no negotiating" dealership too.

They gave me the "friends and family discount on the new vehicle, gave me more for my trade and chopped more off my leather seats I was having installed. Just ask! No matter what happens there will always be another 4runner out there for you and someone willing to deal on it. Do not get attached to any one vehicle!

 

[Yakman]

Have you considered the retail sales tax impact. If you trade, your sale is taxed on $5000 less. At 6% this is $300 less tax. I wouldn't mess with the deal for that.

It sounds as if you own this van. If Honda is offering you $5500, then it's worth $7000 --- sell it yourself. Trades always muck up a deal anyway.

I always sell my "old" car, and usually make $2k more than the trade offered.

Ditto....The impact of retail sales tax is important. The dealer offered me $6,000 for my trade-in. On top of that I received a retail sales tax credit of $480 (8% tax rate), bringing my total trade-in credit to $6,480.

 

[ct221933]

Thanks to all who replied.

I actually placed an ad on craig's list today for $7K and have a few bites right now....will provide update later...

 

[ct221933]

Thanks to all who replied.

I actually placed an ad on craig's list today for $7K and have a few bites right now....will provide update later...

Sold the car in less than 48 hours after posting on Craig's List for $6.5K. That's $1.5K more than I expected. The transaction took place today.

Thanks to all who replied. Looking forward to the arrival of my BP SR5 4x4 later this week.